Market Determinants of Voluntary Disclosure of Macroeconomic Effects on Corporate Performance

49 Pages Posted: 6 Aug 2012

See all articles by Lars Oxelheim

Lars Oxelheim

Research Institute of Industrial Economics (IFN); University of Agder; Lund University

Marcus Thorsheim

Lund University - Lund Institute of Economic Research

Date Written: August 6, 2012

Abstract

The macroeconomic environment is an important determinant of firm performance. Nevertheless, many firms are simplistic in the approach they use to identify, analyze and create strategies for managing the vital relationship between intrinsic competitiveness and macroeconomic fluctuations. Few firms disclose this information to outside stakeholders, which means they are prevented from understanding the intrinsic performance. We analyze the effects of the implementation/development of IFRS/IAS 1 on voluntary macroeconomic information disclosure with a focus on information content and market determinants. We base our analysis on a sample of the 100 largest public European firms in the period 2000-2009. We find that the trend of disclosure quality is positive but the overall level of information is still insufficient. The introduction and development of IFRS has little impact on macroeconomic information disclosure quality. The main drivers of the disclosure of voluntary macroeconomic information are found to be corporate governance and cross-listing.

Keywords: accounting, international financial reporting standards, financial statement analysis, corporate information disclosure, transparency, corporate governance

JEL Classification: F23, F37, G18, G32, G38, L25, M21, M41, M48

Suggested Citation

Oxelheim, Lars and Thorsheim, Marcus, Market Determinants of Voluntary Disclosure of Macroeconomic Effects on Corporate Performance (August 6, 2012). Midwest Finance Association 2013 Annual Meeting Paper, Available at SSRN: https://ssrn.com/abstract=2125037 or http://dx.doi.org/10.2139/ssrn.2125037

Lars Oxelheim (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

P.O. Box 55665
SE-10215 Stockholm
Sweden
+46 8 665 4527 (Phone)
+46 8 665 4599 (Fax)

University of Agder ( email )

Serviceboks 422
N-4604 Kristiansand, VEST AGDER 4604
Norway

Lund University ( email )

P.O.Box 7080
S-220 07 Lund
Sweden
+46462228744 (Phone)

Marcus Thorsheim

Lund University - Lund Institute of Economic Research ( email )

P O Box 7080
SE-220 07 LUND
Sweden

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